Secure Your Family’s Future With Estate Planning
Estate planning is the process of preparing for the transfer of properties usually to one’s children. Most people do not think of estate planning until it is too late. For many people, it is thought of as just suitable for the rich. However, this is a misconception that may cost you dearly.
The process of estate planning needs careful study; read the pointers below to carry this out successfully:
Determine your objectives. You would want to secure the future of your children and even your grandchildren if you have the resources. In this objective, you would like to have the best possible legal method that would reduce taxes. You need to set targets, taking into account your earning capacity and your personal needs.
Factor in the effects of inflation. In computing the future amounts you plan to target, it is critical that you estimate the effects of inflation to make sure the amount is indeed adequate.
Have a written will. To prevent disputes and to make sure that things go according to your plan, it is best to have a written will. Since this is a legal document, it is advised that you consult the services of an attorney that has experience and skill in such matters.
Know the computation of taxes. Each mode of estate transfer has its advantages and disadvantages. You can make a wise decision if you know how to compute the actual costs for each type of transfer.
Let your children know what they will get. This is so they will be able to plan accordingly. There would be no surprises. In many cases, perceived inequity in their inheritance has caused irreversible ill will among the children.
Know the mandatory provisions on inheritance. Under our laws, there are mandatory heirs and there is a certain minimum portion of your estate that must be given to each of them. This means you are not free to dispose of your entire estate as you please.
Have life and disability insurance. There are many reasons you should have life insurance if you want a good estate planning strategy. Probably the most important is to have ready cash to pay the inheritance taxes and other obligations that may crop up after death. For those who are already very liquid, there is another legal benefit of life insurance—the proceeds of life insurance are normally not subject to taxation. You should also have disability insurance, as the financial drain in case you are incapacitated will be even greater. Also put in writing your chosen guardian of your children in case both you and your spouse meet a fatal accident.
Consider giving while you are still alive. There are tax advantages when you do the transfers before you die. There are also legal ways for you to retain control and enjoy the fruits of the asset while you are still alive. You should explore these options to gain maximum advantage.
There are more things to know about estate planning. To learn more about this topic, BusinessCoach, Inc., a leading business seminar provider, conducts a seminar entitled, “Estate Planning Seminar.” Contact (02) 727-5628, (02) 727-8860, (915) 205-0133 or visit www.businesscoachphil.com.
Click here to view details of the seminar: Estate Planning Seminar»
*Originally published by the Manila Bulletin. C-6, Sunday, January 27, 2013. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.